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National Iranian South Oil Company to follow up on development plans

Oil&Gas Materials 15 June 2020 13:07 (UTC +04:00)

TEHRAN,Iran, June 15

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National Iranian South Oil Company (NISOC) is seeking to follow up on the development plans in the oil industry, including the development of of 28 oil reservoirs, said the Managing Director of NISOC Ahmad Mohammadi, Trend reports citing IRNA.

"The development of 28 oil reservoirs is to be implemented via Enterprise Products Partners (EPD) and engineering, procurement and construction (EPC) contracts," said Mohammadi.

"Negotiations on this matter were held with National Iranian Oil Company, however, after Iran got hit with sanctions, the foreign investors backed out of the deal and the NIOC has announced that all the development would be done in 2-3 years, via the EPC plans," he explained.

"The plans can be implemented by local contractors and create job opportunities," he said.

"The 28 reservoirs are currently the most important part of investment in Iran's oil industry, valued at $4.6 billion, where 65 percent will be implemented in the Khuzestan Province," Mohammadi said.

"Another part of investment by the National Iranian South Oil Company is a $1.2 billion contract on collecting gas flares to be later fed to petrochemical complexes," he said.

"Investment on independent gas fields is to start, while renovation of equipment in NISOC will be done via tenders," he said.

"The NISOC has invested a total of $7.5 billion during past 17 months in Khuzestan, which can create jobs," Mohammadi added.

"A $357-million credit has been assigned to these projects in Khuzestan from 2014 to 2019, while in the past five years $214 million worth of credit was assigned to 390 projects and $74 million of it has been spent in 2019," he said.

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